Seven tactics buyers can use to secure a cheaper property

The property market is fragmented and there are lots of mixed messages, with certain reports and indexes showing price rises, others falls, and some experts calling the bottom of the market.

Many buyers are entering the market with an expectation that they will be able to secure a significant discount. This is being met by a large proportion of sellers who are discretionary and don’t need to sell, or they are refusing to accept that their home may be worth less than what they paid.

Having represented hundreds of clients over the past 17 years, I believe there are certain tactics you can apply to help secure a property, even if there are higher offers on the table.

1

ASK THE RIGHT QUESTIONS Asking the right questions is important for fact finding, which will have a significant effect on your negotiation strategy. Find out as much as you can about the sellers – why they are selling, how long the property has been on sale and whether there have been any offers. Those moving for a new job or school place, or a seller who has not yet found an onward purchase, may be more driven by timescales and logistics than price.

2

MAKE THE RIGHT IMPRESSION

Every impression you make will consciously (or subconsciously) determine how you are perceived as a buyer, which affects how any offer you submit is received. If you arrive adorned with designer labels and expensive jewellery, the seller might be less convinced when you insist you have reached your price limit.

3

APPEAL TO THE SELLER’S PRIORITIES

Your buying approach should be adapted to the seller’s profile. In cases where the seller is less emotionally attached to the property – such as if it is a distressed sale or you are negotiating with third parties such as family offices or beneficiaries – taking a purely numbers driven, no-nonsense approach with ultimatums can yield excellent results. But you must be committed and able to follow through.

We were bidding on a new penthouse for a wealthy entrepreneur’s daughter and, while she absolutely loved it, her father wasn’t as emotionally invested.

We used this to our advantage; we made it clear to the developer that we would proceed but only at a certain price and if it wasn’t acceptable, we would simply move on to the next property on our shortlist. The development sales team didn’t want to lose such a good buyer and reluctantly accepted.

4

EMOTIONAL SELLER? BE ON YOUR BEST BEHAVIOUR

If the sale situation is more emotional, you will probably need a different approach. How you conduct yourself during viewings and negotiations will have a significant effect on your success. An authentic, straightforward buyer who is transparent about their intentions will always be favoured by an estate agent and their client, compared with a rude or difficult buyer.

During viewings, remember that you are a guest in someone else’s home. With so many properties today fitted with cameras, remember to keep your opinions on the owner’s interior design choices to yourself until you have left. If the owner is present, popping your head round the door and saying “thank you for having us” goes a long way.

5

DO YOUR SUMS, BUT LEAVE YOUR EGO AT THE DOOR Do your research carefully to ensure you are realistic about what the property you want to buy is worth. You want to negotiate smartly, but avoid going in so low that you risk offending the seller or losing credibility with the agent. If a property is priced competitively, you want to recognise that and pounce on it quickly.

A recent banker client of ours was so fixated on being seen as an aggressive negotiator by his colleagues on the trading floor, that when the perfect flat came on to the market in Belgravia for a very compelling asking price – it had been priced to sell quickly following a divorce – he couldn’t bring himself to pay it. He openly said if the property had been listed £ 100,000 higher he would have offered, so he could have felt he was getting a bargain. Someone savvier snapped up the property.

6

KEEP YOUR EMOTIONS IN CHECK

Over the years we have represented clients who are some of the most exceptional negotiators in their professional field, but they can underestimate the emotional element that is quite unique to property transactions. Even some of the most experienced property professionals I know have handled their own personal property purchases terribly.

7

COMMIT TO THE PROPERTY You will need to continue selling yourself when submitting your offer in writing. As well as, of course, confirming how much you are offering and any fixtures and fittings to be included, it’s a good idea to provide a summary of yourself and why you like the property. As a seller, there is a big difference between receiving an offer from a buyer confirming a price they will pay, and one accompanied by information about the buyers’ particular circumstances, their occupation, sharing that they grew up locally and explaining that they are looking to move back to the area and love this location as it’s on their favourite running route.